Increase in liability insurance held back by lack of insurance data

Trucking news and briefs for Monday, May 16, 2022:

FMCSA tells Congress insurance industry to hold back on increased insurance requirements

In a report to Congress this month regarding current financial accountability requirements for motor carriers, brokers and freight forwarders, the Federal Motor Carrier Safety Administration said the insurance industry’s lack of transparency is a major reasons why the agency has not yet supported any increase in the number of carriers. ‘ Liability insurance obligation of $750,000.

The report follows others published on the subject for nearly 10 years since the FMCSA’s study of the matter was required by law in the 2012 Highway Bill MAP-21.

The agency said minimum insurance requirements for carriers were set in the 1980s and noted that medical and other costs related to “catastrophic accidents have risen dramatically”. The FMCSA also noted that while such catastrophic accidents are relatively rare, “the costs of resulting property damage, injury, and death can significantly exceed minimum levels of financial responsibility.”

Even so, the FMCSA said much of the information it would need to review the adequacy of current insurance requirements is not readily available because many lawsuits are settled out of court and subject to settlements. of non-disclosure. Additionally, the agency said a lot of information about insurance companies is proprietary.

“As a result, FMCSA is only able to provide a limited assessment of the adequacy of motor carrier financial accountability requirements at this time,” FMCSA said in its report. “In order for the FMCSA to adequately assess the sufficiency of financial accountability requirements, the agency would need access to more detailed information from the insurance industry, including anonymized claims data.”

The agency said efforts to obtain this information using existing legal authorities and through voluntary disclosure requests have been unsuccessful.

NFI puts an electric truck at the service of Puma

NFI uses this electric Freightliner in drayage operations for sportswear company Puma, one of NFI’s customers.Sportswear company Puma has started moving goods from the Port of Los Angeles to its warehouse in Torrance, California with an all-electric truck – a move that is part of the company’s strategy to reduce carbon emissions across all of its activities.

The Freightliner eCascadia, which is operated by Puma’s drayage partner, NFI (CCJ Top 250, n°21), is a first test vehicle. By the third quarter of 2022, the company plans to have five electric trucks in operation to transport goods from the port to the warehouse.

Electric trucks delivering goods from the port to the Torrance distribution center are another part of Puma’s strategy to reduce carbon emissions across its business. Last month, the company announced that it had reduced its own carbon emissions and those of purchased energy by 88% between 2017 and 2021. Carbon dioxide emissions have also decreased in the supply chain of business, the most carbon-intensive part of its business, despite strong revenue growth over the same period.

“While electric vehicles are already quite common for passenger cars, electric trucking is just getting started,” said John Amato, senior vice president of NFI. “We are delighted that Puma has agreed to join us in this project and to use this new technology in the daily operations of the company.”

Last of Michigan’s weight restrictions lifted

Effective 6 a.m. Friday, May 13, the Michigan Department of Transportation lifted weight restrictions on all major state highways statewide. State roads usually have M, I, or US designations.

Weight restrictions are in place during the spring frost period and are now complete for the 2022 season.

County highway commissions and city public works departments have implemented their own seasonal weight restrictions, which usually, but not always, coincide with state highway weight restrictions. Signs are usually posted indicating routes with weight restrictions.